Sports brand: who will go further

Editor's note: 2012 will be a turning point in the sporting goods industry. With the integration of the industry, inevitable mergers and eliminations have been successively staged. Ma Gang, an expert in sports market research, points out that for companies, whoever is more healthy and who will go further.

In the past few years, the Chinese sportswear market has grown rapidly at an average annual growth rate of over 20%. The sporting goods industry was once called the "sunrise industry," and the name of the head of each major sports brand company also appears frequently. The richest people list.

Ma Gang, an expert in sports product market research, pointed out that 2012 will be a turning point in the sporting goods industry. With the integration of the industry, inevitable mergers and eliminations have been successively staged. Li Ning, Anta, Belle, and Pou Sheng have merger cases. In the future, there should be certain cases of mergers. He believes that for companies, who's terminal is healthier, who will go further.

Multi-brand and multi-category bows Li Ning Company was the earliest attempter of multi-brand operation. In that year, it chose the right to operate KAPPA brand in China. Later, it introduced the French outdoor brand, Ego, and launched its own brand “New Action”, introducing the Italian brand Lotto. The acquisition of sports equipment manufacturer Red Double Happiness and sports equipment manufacturer Kai Sheng, also at the same time Li Ning brand classification, cut into children's sporting goods and sports lifestyle category.

Li Ning has become a multi-brand, multi-category comprehensive sports goods manufacturer. Xtep's multi-brand operation cuts in early, and has introduced the Spanish brand Colin and the American brand Disney. The first implementation of Anta was the main brand segmentation, which extended to ANTA Sports Lifestyle category and Anta KIDS category. Subsequently, it incorporated the FILA brand into its portfolio and initially established a multi-brand, multi-category operating system. In contrast, the 361-degree company's diversification steps have been slower and only the 361 KIDS series has been introduced.

Sportswear field has seven wolves and other traditional clothing companies to enter the market, this is only the beginning, I believe there will be later players into the field of sports shoes. Sports brand cut into the field of fashion and footwear, there are Adidas's NEO sub-series, Nike's 360 sub-series, targeting the fashion apparel consumer groups. Anta's sports lifestyle stores have opened nearly 500 stores across the country and the contest has begun. Fashion clothing brand sports soaked, sports brand fashion into the market is the norm. For consumers, there are more choices. For brand manufacturers, there are more force points, instead of left and right strokes, but left and right bows. These companies that "change" the product line will certainly go further.

Optimize channels to improve the development of the single-product market to a certain extent, expansion mode of expansion of the channel will inevitably stagnate, optimize channels, increase single-store output, and consolidate brand performance become an inevitable choice for enterprises to “go on the go”.

At present, the average area of ​​shops in sporting goods stores is about 100 square meters. From the perspective of product categories, the malls are not very malleable, and consumer choice and comparability are not strong either. With the reform of the retail market, the future retail market will be divided into two levels, namely, the specialty stores, specialty stores, and large stores with various brands. If the brand factory product category increases, then the terminal store will need to expand and upgrade. The rent on the first floor of the traditional shopping district is expensive and expansion is not easy. In comparison, converting the second floor or even the third floor to a shopping mall is the most economical option, and the hypermarkets are also in line with the brand's integrated operation, and can not only accommodate more categories. It is also possible to introduce sub-brands and put "eggs" in another basket.

At present, the role of sporting goods stores is limited to the display and sales of products, and additional functions are limited. From the four leading international apparel industry 4S standards: Sell (apparel sales), Sight Experience, Self-Identity Service, and Life Style Salon, the sporting goods industry The far-reaching gap includes the flagship stores in the first-tier cities. Of course, it is not that 4S can be copied. At least in some cities, the function of the store can be innovative. Only in this way can companies be more internationally competitive.

If we want to go further from extensive to elaborate, the domestic sports brand's way of thinking needs to be transformed. At present, most sporting goods manufacturers play a role as large wholesalers, that is, doing product marketing, whereby the products are distributed to distributors and then resold to retail franchisees by distributors. The management of brand manufacturers is still relatively extensive. The situation in which the brand is operating locally is related to the dealers' ability to operate. The brand manufacturers have little control over the market. As for how the products are sold at the terminal, how to operate the details of each link, the brand owner asks questions. Very little. The distance between brand dealers and retailers is too far, which has caused brand dealers to be less precise in the size, direction and timing of firepower marketing. Brands need to put aside their postures, stay close to the terminal with a low profile, and pay attention to every aspect of retailing, and form an effective tandem between design, production, logistics, store presentation methods, sales force capabilities, and consumer feedback to open the entire interest chain.

For the retail industry, data is all the secrets of the business, and the ERP system presents these data in an orderly manner to facilitate the relevant personnel to find out the relationship between data and tap new growth points. Most of the major sporting goods manufacturers in the country are on the ERPs of well-known software companies, but the accuracy of ERP's terminal usage is not high, about 50%. In the future, through ERP or more advanced information systems, sports companies will need to increase the synergistic effect of the entire supply chain, distribution chain, and interest chain, reduce risk of “prediction” with precise management, save time, and increase efficiency.